ITV plc (ITV) Earnings Call Transcript

It's good to see you here. And I know you're probably busy no doubt with the intense planning for the coronation on necessity. So thanks for giving your time, and I hope you enjoy the day on a historic day. I have my fellow directors with me as usual today. So let me just introduce them to you. So Salman Amin on my right; Graham Cooke; Sharmila Nebhrajani, who is also Chair of our Remuneration Committee; Chris Kennedy, our Group Chief Financial Officer and Chief Operating Officer; Kyla Mullins, who acts as our General Counsel and Company Secretary; Carolyn McCall, of course, well known to you all, I'm sure, our CEO; Edward Bonham-Carter, Senior Independent Director and Workforce Engagement Director; Margaret Ewing, who brilliantly chairs our Audit and Risk Committee; and Anna Manz, getting cats; and Duncan Painter to the left. You're aware the AGM is an important part of the Board's annual calendar, and we do appreciate the opportunity to meet you. We'll invite those in the room here today to ask questions very shortly. But first, Carolyn and I would just like to say a few words to you about the business. And for me, it's been 7 months now since I took the chair and what's really struck me most of all coming into ITV is simply the passion and the pride that the people have throughout the organization for what they do and for what we do. And I have to say that the commitment to those values and the way the organization operates starts at the top, and I would like to pay great credit to my predecessor, Peter Bazalgette, who left in October, and who did a wonderful job setting the tone of the business from the Board. But great thanks and credit also goes to Carolyn and indeed Chris and the rest of the leadership team, who walk the talk every day in terms of the values of this organization and what we stand for. We reported a robust set of figures for the last 12 months recently, and we achieved those despite what I think everybody would recognize as challenging -- market challenges in the wider economy. The media landscape in which we operate is changing very quickly. And it's fair to say we expect that to continue over the next few years. Carolyn will talk more of that in a minute. We are a very successful international studios content business and of course, the U.K.'s leading commercial broadcast platform. And because of that combination, we're actually very well placed at ITV to take advantage of all the changes that are taking place in the wider landscape. Over the last 12 months, ITV has continued to push ahead with its strategic vision. That's to be a leader in the U.K. streaming market and to be an expanding global force in the content world. In July last year, we acquired the highly acclaimed production business, Plimsoll, who are the largest independent producer of natural history programs in the world. And in December, we successfully launched our new streaming service, iTVX, again, which Carolyn will talk about in a minute. That launch was achieved on a really tight time scale and was a massive effort by the team and full marks them for pulling it off. It's a real testament to the talent and the commitment of the people in the business. The Board are very pleased with the early results about more of which you'll hear in a second. So in conclusion, early days for me, but it's clear our people can be counted on to deliver success for this business and they drive our success. We are fortunate to be able in ITV to attract the best and the brightest in this industry. We have, I believe, a strong and experienced Board with whom it's a privilege to work and we possess a very talented management team. I'm very much looking forward to the next few years working alongside the team and the Board. And I just want to say thank you to them for their warm welcome since I arrived and indeed for the major contribution they all made last year. So what was a good set of results and delivering a very big change agenda for ITV. So more for me in a minute when we come back to questions, but for now, let me ask Carolyn to say a little bit more about the business last year. Carolyn?

Thank you, Andy. And thank you all very much for joining our AGM today. Many, many familiar faces out there. So welcome back to many of you. We're looking forward to answering your questions naturally. But first, I'd like to just say a few words very briefly about ITV's performance last year. And also our focus for this year. Our purpose, as you know, is very clear. It seems very clear to viewers and shareholders alike. We've done a couple of surveys on that, and that's the feedback we get. And really, what our purpose is, is to entertain and to connect with millions of people in the U.K., but also globally, reflecting and shaping culture and building brands with brilliant content and creativity. And if we achieve this purpose, we believe we strive to do that every day. We will continue to be a successful commercial public service broadcaster. Now 2022 was a year, as Andy said, of strong execution. It was all about the execution and also significant strategic progress. We did deliver record revenues in ITV Studios, up 19% on 2021, reflecting organic growth at above the market average and acquisitions made in the year also, we grew ahead of the already growing global content market. So we are now a scaled global producer, diversified by genre, by customer and by geography. In the Media and Entertainment division, which some of you would refer to as the Broadcast division in the past, we achieved the second highest advertising revenue in ITV's history. We grew digital revenues by 18%, and that was in part driven by an investment in streaming and the successful launch of ITVX in December, which Andy already referred to. Now that is our new advertising-funded streaming service, which has been really well received by both viewers and advertisers alike. So in the U.K., we continue to incent and inform the nation with a strong like sports, drama, entertainment and news programming, all distributed through our linear channels and now also on ITVX. Globally, we continue to produce high-quality and award-winning content for a growing customer base of local broadcasters across the world and global streamers. All of this was achieved while continuing to deliver that very important remit as a public service broadcaster and focusing on our ESG priorities as outlined, and I'm sure you're familiar with that. We've outlined that in our social strategy and our diversity acceleration plan. So I think those of you, who have been here many times before know that creativity is at the very heart of ITV and to illustrate the power of our creativity, I'd just like you to see a short take some highlights of the last year from our Studios division, but also what's been on ITV screens from our Media and Entertainment division. [Presentation]

I hoped you enjoyed that David. It wouldn't be an AGM without a sizzle from ITV. And I hope it demonstrates the breadth of content we delivered to our viewers and global customers in 2022. Now looking ahead, we have a clear strategic vision. Our aim is to be a leader in U.K. streaming and an expanding global forcing content. Our strategy is led by the 3 key priorities to expand our U.K. and global production business, to supercharge our streaming business and to optimize our broadcast business. Underpinning this strategy is a set of key performance indicators and targets, which we are saying we will deliver by 2026. We are really aware that the market in which we operate is evolving rapidly. As a vertically integrated producer broadcaster and streamer business, we have some competitive advantages that really allow us to respond to these changes. That model provides ITV Studios with a bedrock of core commissions from ITV network and a formidable promotional engine for its content. It enables cross-promotion and monetizing of ITV Studios content across our business, it secures access to great content ITV channels and streaming platforms, and it helps us very much to attract and retain the best creative talent, many of whom you saw on that screen in the industry. Now demand for quality content is growing at around 2% to 3% per year to 2026, driven particularly by the demand from global and local streaming platforms. Our Studios business is very well placed to take advantage of that demand and it's actually exposed to higher growth segments of that market. Within ITV Studios, we will grow organic revenues on average by 5% per year to 2026, ahead of the market and deliver margins between 13% to 15%, which will remain at the lower end of the scale of 2023, because we're still rebuilding our margins post-COVID. Viewer habits of course, continue to change. You will all know that. So within Media and Entertainment, we have a forensic focus on viewers and every we make will combine unique creativity, which was always the case, but now data insight, because of the investments we've made in data and technology. Through that, we will double our digital revenues to at least GBP 750 million by 2026. Advertiser needs, of course, are also evolving. They want both mass reach to build their brands, but also they want data-led targeted advertising, which they get from the tech players. ITV is now in an enviable position, because it can offer both, supported by our deep relationships with advertisers, but also by our leading programmatic video advertiser platform, Planet V. That is something we invested in, we launched and has now got to a level where advertisers are really, really using it extensively. So that enables us to deliver addressable advertising to targeted advertising at scale. This has encouraged advertisers to spend more with ITV. It's actually attracted new advertisers to ITV, and they're looking to benefit from the enhanced targeting we can provide through the significant volume and reach of viewers through ITVX. Our core part of our vision is continuing to deliver as a public service broadcaster. So we really welcome to the Media build. We've been working on that for a long time, and that's going to replace the 2003 broadcasting act outdated regulation. We're now encouraging the government to ensure the build becomes low as soon as possible. The fact that they've announced it is incredibly good news. Based on the publication of the Media bill, I'm really pleased to confirm that the Board plans to renew ITV's PSB license for another 10 years. So just turning to current year, we have made a really good start to 2023 on air, online and in production. As expected, the macroeconomic environment remains difficult, which, of course, affects linear advertising, and our aim there is try to always be ahead of the market. ITV Studios is now 1 of the top 3 international producers in most of the markets we operate in. And this -- and our global scale gives us access to key content buyers, top creative talent in the leading markets around the world, where we deliver sales on new and finished programs and formats to customers globally. Now just a few examples. You saw a clip of My Mom, Your Dad, that is a new show, which has now reached the milestone of having been commissioned in 10 international territories already. So very, very good. Nolly, the drama created by Quay Street Productions, which is part of ITV Studios has been one of ITVX's most watched drama premieres this year. And building on that, ITV Studios has been able to secure secondary sales for Nolly to broadcast and to stream our customers in the U.S., Australia and Hong Kong. In Q1, we've continued to deliver on attracting mass live audiences with huge Saturday night entertainment format such as Saturday Night Takeaway and Britain's Got Talent and an unmissable sporting events like the Six Nations Rugby and the FA Cup. ITVX, as Andy said, has sustained its strong launch. The range of original content has engaged millions of viewers and encouraged them to spend more time on ITVX. On Easter Sunday 2023, ITVX officially hit the 1 billion streams mark, just over 4 months of the service launch. To put that in context, in 2022, which was ITV's previous most successful year for streams when it took nearly 7 months to hit the 1 billion streams mark. So that's definite progress. So we will continue to strengthen ITVX's content and music experience throughout 2023. And internally, we talk about this as a launch year. So we might have launched it, but this is a continuing launch year. In summary, after 2023, we are confident that our vision and strategy will ensure that ITV thrives in a dynamic media world. Due to our strategic actions and strong execution, we now have a scaled and expanding global production business, a rapidly growing digital advertising platform and a resilient linear TV advertising business, and they are all powered by a unique vertically integrated producer broadcaster and streamer model. ITV is demonstrably more balanced as an enterprise, which is ideally placed to take advantage of the growing demand for quality content and take a larger share of the digital advertising market. We entered 2023, as I said, with strong momentum. We are on track to deliver all of our 2026 KPIs. The balance sheet is in good shape. And this, combined with our strong cash flows enables us to invest in our strategy to build this more valuable, enduring business and also to deliver returns to shareholders. So going forward, Board is very pleased to be fully committed to paying a full year ordinary dividend of at least 5p, which it will grow over time. Back to Andy.

Thank you. Thank you, Carolyn. So ladies and gentlemen, we'd be happy now to take any questions that you have about ITV or about any of the resolutions that you may have that we have on the agenda of today's meeting. [Operator Instructions] It would help us if you could actually give your name as well when introducing yourself. Let's take questions. [indiscernible]

I don't know if I actually would need a microphone, but I do still feel that there is a lack of patriotism. And as an Irishman, I'm always surprised at the lack of patriotism by the British, but such things as Lorraine Kelly, who Ministry of Defense have awarded the honor title of Colonel of the Army Cadet force and the order of commander of the order of the British Empire. And yet she tells us she didn't know the difference between St. Edward's Crown with which the sovereign is crowned and the Imperial State Crown, which they wear on subsequent occasions. And we are going to have this unique experience, an opportunity to promote Britain and be proud of being British with the coronation. I will, of course, be watching the ITV reporting. I don't want to see the same mistakes like Prince William's wedding where the ITV commentator mixed the titles of Prince William with the Queen. Not many people should have been. When you see those Yeomen of the Guard and the gentlemen standing close to the sovereign, the honorable company of gentlemen at arms. Who are they? Where does they come from? Could I be one of the honorable gentleman? You have to have served in the Army and written to the rank of major or superior to be one of those. There's your secret. One of them let us know about that. Who are the Beefeaters or the Yeomen of the Guard? They are ex-warrant officers with more than 22 years of Army service. Britain does not look after its veterans well enough. And I do feel that ITV should do more to promote the needs. When you consider more Falklands' veterans have committed suicide than were killed in the Battle of the South Atlantic. I know this for being a member of the Royal British Legion and we do pay for our advertisements, but I really think we should get more help, talk about them. A bit of documentary what are our armed forces. America is so fiercely supportive and Hollywood supportive of the American armed forces, but we, the visual media, are not supportive of the British armed forces in the same way. I could say an awful lot more. Thank you.

Thank you. Thank you, Captain [indiscernible]. Well, you speak with feeling. And I don't think anybody in the room would speak otherwise about the need to respect the huge service and commitment that our arm forces give and the tragedy that you mentioned of the [ statistics ] of death is truly shocking. And I was an adviser to a public factory that places injured were factions into work until recently. And I understand at close hand what's involved in that. So I think ITV is a company that respects the national institutions, and you can see that in the pride we deliver our programming. I think the Queen's funeral was a good example of how we did that. And we didn't name the pallbearers of the coffin [indiscernible]. We take great pride in that, but sanity is another wonderful opportunity for our teams to demonstrate that skill and professionalism in what will be, as you say, a historic time. And for further commitment to armed forces, I think Carolyn takes the notice on board, we'll take you back. But thank you for your points. And we will certainly respond hopefully, over the weekend with a first rate delivery. Thank you. Somebody was at the back, I think.

Excuse me if I don't get up. [indiscernible] I'll introduce myself, ex-Lance Corporal Collier, national service 1957-'59. I thought I'd put my rank as the captain has already put his rank in, right? Question. Can I refer to PricewaterhouseCoopers, which you are actually at the moment, going to -- shall we say, as for put a resolution down and asking us to vote on it. Can I ask where -- concerning PricewaterhouseCooper is concerned, how long are they got for their contract with ITV before you have to start looking around? I tell you why because I was reading a report in the paper a few weeks ago that PricewaterhouseCooper have been, shall we say, smacked over the risk very, very hard by the Finance Conduct Authority. In fact, for a better word, about 4 or 5, shall we say, big companies of how to have their accounts investigated again. I just want to know for a better word, if and as and when you are going to start looking around for a known accountant firm to, shall we say, to audit your books, please do not include PriceWaterhouseCooper, because I think basically, you could be going down a very dodgy path. That's that one. Can I also refer to the report at the beginning. Let me get my glasses as I can't see without them. On the content page on Page 1, you do something about social purpose impact report. Is that concerning what you'll call looking after the environment and you shall we say, cutting back on waste materials? You must get a heck of a lot one way or another being in what you call the film industry. And lastly, the other question is, I'm an evolving Carnaby. I was very fortunate, very -- a few years ago to have my photograph taken with an Oscar, which they won for media outlets and also a better award. So has ITV got anything that it would like to show us shareholders next year that you can put on the table so that i.e., you can say, this is what we've won during the year? If you want to have your photograph taken, please do so.

Well, I'll let Carolyn answer that last one, give or say to think about it. On PricewaterhouseCoopers. We changed to PricewaterhouseCoopers only last year. So they're new in the frame for us as our external auditors. And I'd have to say, having had several experiences in similar positions in different businesses, I think they're doing an outstanding job and they're right on the mark. The audit profession as a whole has received quite a lot of scrutiny over the last 2 to 3 years and is actually -- there's a set of new regulations being put together by the FRC under the offices of the government, which are going to tighten the screws a bit, not just on their industry, but the way we do our own audits internally. So I think we'll be in good shape both as an audit profession, I think I can speak for a PwC and internally at ITV in terms of the audit that we do. And we review very carefully and closely with the Audit Committee under Margaret's leadership, the quality of their work. We do that privately and with them in a very well-documented review, and it's very thorough. So far, so good. We've been very pleased with their work, and we're glad they're on the team. And they'll be with us all other things being equal, for a maximum 8 years before you need to then review and make a change. So do I. Yes. Well, we're all around, but we'll be able to swap notes. On the second question, yes, social purpose is a very big focus for ITV, because we can make a difference, not just in the way we run our organization, which are a lot of organizations do, but we obviously have the opportunity to influence behavior in the way things are in the real world. So it is a big focus for the organization, and we acclaimed in many respects in terms of what we do. So the social purpose reports about all those things that we put together, which have a bigger duty of care to the planet to our people. So our climate change agenda and what we're doing to reduce our carbon emissions, for example, and that includes their for waste. We're on a journey to zero waste in the next year or 2. We've got in that diversity and inclusion targets, which talk to how we compose our organization with different types of individuals. We've got how we look after our people, on a social front and what I'm missing? One of the piece I'm missing.

Governance. Mental health.

Mental health and physical health, which is particularly mental health is a big focus for us of the mode. So that is there is a great report, if you haven't read it. It shows the progress we're making. We're very proud at the moment. We've just been -- on the carbon front, we've got a good plan to move down, and we've just been given an A rating by one of the global authorities in this called CDP, the Carbon Disclosure Project. There's only 2% of the organizations in the world, you get this, and we just had an A rating, so quite tough about that. On the final point.

No, we've got so many awards. We have honestly won so many awards for our programming in particular, but also actually for such purpose and whole range, but I think you mean programming. And I have absolutely no problem bringing some of them next year to show you, and you've got a welcome to have your photograph taken with them. So we'll do that next year.

Yes. Gentleman here. You'll be on the front of the queue, Sir. So yes. Gentleman here.

My name is [ Paul Castle ], a small shareholder. With regard to the impending Channel 4 privatization, I wondered if you could tell me anything about whether ITV is considered making a bid, whether a bid has been made, whether ITV considers that the competition authorities might be concerned with regard to the total quantity of advertising the company has. And whether if the bid was successful, you would ask the shareholder approval?

Well, I think I can answer your question very quickly, actually, Mr. [ Castle ]. That privatization idea has been stopped with the recent changes in the government and the difference -- different people are now in different seats in Downing Street and around the area, they changed their mind and Media bill in which it was originally included, the Media bill is what Carolyn was talking to, which is hopefully going through the parliamentary system soon. That was where the Channel 4 privatization was being recommended as part of that bill. With the change of the Secretary of State and Nadine Dorries moving on and changes after that, it was removed. So it's not any longer being proposed and won't be part of the future Media bill.

And it might worth just be added, just to add that the fact that it's not in the Media bill, I mean, it has cross-party support in the Media bill. And for ITV, that's a very good thing, because it will expedite the Media bill going through Parliament.

So thank you for your question, but it's events have overtaken. So the gentleman was down here, and then we'll go to the lady over there. We can't hear you, sir.

You can't hear me? Okay. I can speak louder. There's about 3 questions, which one is McCall, she was very -- we were very successful previous to coming here, I follow corruptible career very severely. What is puzzling me with her knowledge of business is would she, how would she measure her performance of the share price compared to when she take over, which was about GBP 1.40 to this plan around 70p or 80p? For my little bit of grammar, that is a failure. Thirdly or secondly, whichever you want to look at it, do you measure the people character before you bring them on to Love Island. Is -- if a person's character is not up to standard, that means the lower the possibility for people to think respectfully of the program, respectfully, I said. I have a last one for you, Ms. McCall. You had a very successful program with Andrew Neil, which is very enlightening and he might take some kind of evidence to say, well, is ITV performing very good or bad? If we -- if the show was on this week, you would have probably come on a Sunday afternoon. Is there only one of the educated people, who you can debate financial performances in this country? You've been around for over 40 years with [ more dock under time ]. So if you can have some people with some knowledge of business, it would be very helpful. I noticed you have a very wealthy family character with you. He may able us to help a little bit. I don't want to give you was involved in slavery, but they are very successful company. Thank you very much.

Thanks for the questions. I'm sorry, I didn't hear your name.

My name is Leon Bond.

Let me have a go to answering the first one. And then Carolyn can amplify on to the other 2. So the share price is obviously a frustration to us all and something we...

You couldn't hear me. And I can't hear you.

You can't hear me. Can you hear me now. All right. You have to come to the front row. You copy that. Are you okay? All right. So on the share price, it's a frustration that we all share, obviously. I'd characterize it as actually has a strategy, which has to be invested in. And there are certain parts of the journey of the strategy where the investment has to kick in. And what was announced last year, was a major investment into ITVX. And ITVX is a new technology. It requires new skills, and it requires a lot more content than we previously used to spend every year. And in the short term, that means that the profits that we generate are going to be low, because we know and we knew that coming in. The idea and the plan clearly is that over the years to come, it will return a better rate than we've previously seeing. And it will be enabling ITV to grow into the future for decades into the future, because we will have invested in the technology and the skills that take us forward. It's a bit like, if you like, the car industry, that's moving towards electric vehicles. If you don't have an electric vehicle in the future, you're not going to have much of a sale of your cars. So the investment in that platform is what the car industry is having to do is that as customers move to electricity to drive cars. Similarly, in ITV, the technology of the future is what ITVX is based on. So that investment was significant, and it will be there for a number of years. But the long-term interest of shareholders, which is what the Board focuses on more than everything else, the long-term interest is interest of shareholders is best served by making the investment, even though the impact on share price is disappointing and frustrating, we understand that. Carolyn, do you want to have a crack at the other 2?

Yes. I would just add that the Ukraine has not helped the share price though.

No, we could have done without that.

We could have done without that. And I think also every other U.K. facing stock has been very exposed on share price. So I think we're in a basket of stock price, share price has been under pressure, not definitely because of investment, but also because of Ukraine. On the characters of Love Islands, we have an extensive casting process. So we spend a lot of time choosing people and we get 15,000 to 18,000 people applied to go on Love Island. And we have to whittle that down and fit that out and make sure that people that go on are both physically and mentally kind of fit now to go on, and that they were also be able to cope with the fact that they are expected to be entertaining. So there's a huge amount that goes into the casting of those characters, but as to their character, I think they tend to emerge as they come through on screen. And if there was anything that didn't fit the values or was out of order, the producers would pull them out or they would pull them up. So that's how we work on Love Island. And it's a very rigorous process, and it's actually a very well-developed process now, because there will be a multiple series of Love Island. [indiscernible]

The one individual is -- my question was premise on one individual. And -- the matter might still go to court for all I know. But what I'm saying is premise and I don't want to call the name, but it's very easy. You can reverse a name and you'll get a very good name. What I'm saying to you, knowing that a lot of people look at the program, including my grandchildren and the character when he will show in #10, talent where there was a question in him. That is not a pleasant character for a young girl. Secondly, we do not know for a fact that did you relinquish his payment. This is to do with everybody -- relinquish his payment when he joined you. And it's a very lucrative job. I will wish to go on that.

We can put up with you afterwards, because we don't -- I don't know the context. I don't know who you're referring to.

The context, I can say more than that. We're hopefully aware he was on your channel as well for the character of person. I follow these things very seriously. So therefore, I think I have a lot of respect for you a couple of years ago. But I don't know if your performance on ITV is lower yourself. I do not know.

We'll pick that up. Can we pick that up with you afterwards. Okay. Your third question was I think about business on ITV. Are you saying -- I'm wasn't so clear whether you were saying Andrew Neil was on ITV.

No, no, no.

No, he was wasn't. Okay, that's fine. Yes, yes, yes. Okay. So we have our business -- the way we do our business is to Robert Peston, who has his own nightly show. He's previous Chief Economic Senator. He's now economics and political edges and he covers a huge amount of ground on the business side. And I think I would also say Martin Lewis is probably the most trusted man in the country, he is on ITV constantly. I mean, he's only -- he gets a lot of coverage on ITV. That's how we do it.

We need to move on, there's a lady here in the glasses.

Good morning. My name is [ Beatrice Brown ], and I'm here today on behalf of ShareAction, with a question regarding ITV's policies related to the insecurity of work, particularly for lower paid employees and contracted workers. So I'd like to first thank you for your positive engagement with ShareAction on the topic of the living hours standard, including agreeing to a meeting with ShareAction and investors on this issue. I'm here today to follow up on this offer and following a letter sent to you in October by the good work investor coalition. I'm delighted that ITV is a living wage employer. This is one of the most important steps an employer can take to alleviate in work poverty. However, the number of hours worked and the security of those hours can significantly affect the amount of pay employees take home. The living hours standard established by the Living Wage Foundation presents employers with the opportunity to provide staff with security and stability. Living hours accredited employers commit to providing workers with decent notice periods for shifts of at least 4 weeks' notice with guaranteed payment if shifts are canceled within this notice period. The right to a contract that reflects accurate hours worked and a guaranteed minimum of 16 hours a week, unless the worker requests otherwise. ShareAction's good work program coordinates the coalition of institutional investors with GBP 3.7 trillion in assets under management. Following successful engagement on the living wage, its members are now engaging with the companies on the issue of insecure work and promoting the living hours standard as a marker of responsible business practice. I'd like to ask the Board to give an overview of ITV's approach to contracts and how their current practices compared to the above measures? Will the company be a leader and become an early adopter of the standards? And lastly, would ITV still be willing to meet with ShareAction, the living wage foundation and investors from the good work coalition to discuss this further?

Thank you, Ms. Brown. Well, I think the best -- the first answer is, of course, we've engaged. We have -- I think we have a history of track record of engagement wanting to -- we totally respect the contribution and the -- without our people and their commitment, we are nothing. So we work very, very openheartedly on trying continually to improve the working conditions and the reward structures for our people, and I hope our actions in the last few years have demonstrated that. Thanks for those comments. I'm not familiar with that particular issue, and I'm not familiar with the letter that you've written. Maybe its gone to a different thing. But we do have our Head of HR here today on people, Director, David. And can I just suggest that after the meeting, we have a little chat about how we can broker a conversation to take that forward. But thank you for the question, and I understand the spirit in which it was made. And we'll make sure that the Board understands where that conversation goes. Gentleman, next to you.

Forgive me [indiscernible]. John Farmer, Chairman, diversified shareholder and for some decades of ITV reading many annual reports and attending many AGMs. Before a more substantive question on your performance, may I constructively ask respectively about your annual report and your AGM. As one who reads many annual reports, I acknowledge that yours is more legible than many and that you are trying to appear lively. But can I gently caution against pastel contrast. I seek to read the report at speed, not be slowed by black on pink or black on blue. And why also have you embraced the current FAD for printing in columns. I hypothesize that this cumulatively waste paper, it's also extremely irritating if reading online because one scrolling up and down, the remuneration report in yours and other annual reports recur results or recurs to -- reverts to printing across the page. Why can't we have the rest of it like that? And at that stage I invite you to respond before I go on.

We'll respond to that first, right?

Yes, please.